Accounting Essentials Self-Assessment #1

Assets represent amounts owed to entities outside of the business.

• True

• False

Notes Payable is a liability account. True or False?

• True

• False

Accounts Payable is an asset account. True or False?

• True

• False

The Nathaniel H. Spencer, Capital account represents amounts withdrawn from a business by the owner.

• True

• False

With double-entry bookkeeping, at least two accounts are impacted by every transaction.

• True

• False

The sale of services to a customer on account increases the Service Revenue and the Accounts Receivable accounts.

• True

• False

Recording transactions allows a company to maintain a running balance for each account. True or False?

• True

• False

What is the accounting equation?

Identify the action that is NOT a transaction.

• Renaming a business

• Purchasing office furniture for cash

• Selling goods to a customer

• The owner investing cash into a business

Fill in the blank: The accounting equation is ______ = Liabilities + Owner's Equity.

• Assets

• Expenses

• Revenue

• Dividends